An Open Letter from The California Association of Realtors

The National Association of Realtors (NAR) reached a significant settlement in 2023 involving multiple class-action lawsuits, including Sitzer/Burnett and Moehrl, which challenged the organization's practices regarding buyer agent commission policies. The lawsuits argued that these practices inflated homebuyer costs by requiring sellers to pay commissions for buyers' agents, which the plaintiffs claimed was anticompetitive and violated antitrust laws. The settlement, pending approval, aims to address these issues by making changes to the commission structure and increasing transparency, thus potentially transforming the real estate industry by allowing for more competitive and consumer-friendly practices.

The California Association of Realtors, of which we are members, recently issued an open letter to Californians and non-residents regarding the major changes resulting from this litigation:

Dear Californians,

If you’ve been reading about real estate lately, you’ve no doubt heard about antitrust lawsuits and settlements by real estate brokerages and the National Association of REALTORS® . You’ve also heard about the settlements resulting in certain changes in how agents will be compensated for their work. Recent coverage by media entities, industry insiders and anyone with an opinion and a smartphone have offered up a mix of fact and fiction. All this noise has caused confusion, fear and, in some instances, panic about the process of buying and selling a home.

Continue reading the letter HERE.

We will continue to represent our clients with honesty, integrity, and commitment.